Romney’s Genuine Capitalist Bona Fides Could Be His Downfall
Say what you will about him, Mitt Romney is the real thing: a Wall Street guy to his bones, a numbers whiz who took a small start-up, Bain Capital, and helped turn it into a $65 billion giant among private-equity firms (which is what we now call the the old corporate-raiding leveraged-buyout buccaneers we used to think of as “barbarians at the gate” back in ’80s; in case anyone was wondering, they’re now allowed inside the gate). Romney actually is, in other words, what Newt Gingrich and Rick Santorum and Rick Perry can only talk about in the abstract: he’s a real capitalist.
And now we find that he gets paid like one too. To the surprise of very few, the GOP’s nominee presumptive acknowledged on Tuesday that he pays about 15 percent in taxes, far less a percentage than the average middle-class American, thanks to a host of tax breaks proffered by what Warren Buffett once critically called “our billionaire-friendly Congress.”
But Romney’s biggest political problem right now is not that he is at loggerheads with his fellow Rich Guy, St. Warren of Omaha, who has generously demanded that the billionaire-friendly Congress ask more of the super-wealthy in taxes (which Romney vehemently opposes). Buffett doesn’t command that many votes. Romney’s biggest problem is determining whether the mood of the country has really shifted against the financial plutocrats as much as the Occupy Wall Street movement might indicate.
I think it has, and Romney will have a lot of self-defense to do in the general election.
As much as they might have annoyed their conservative base, Gingrich and Perry were on to something when they attacked Bain Capital in South Carolina. The anti-Wall Steet anger cuts across party lines. It’s not so much the kind of activities that Romney and Bain were engaged in; Bain is really just feeling the blowback from anger on both left and pight. Bain may sometimes destroy jobs, but when it fails at a venture, at least it loses money.
Yet the public may no longer be interested in making the distinction between Wall Street firms that follow the rules and those that don’t. The reason that what Gingrich and Perry are saying resonates goes back to Wall Street’s offenses over the last decade with subprime mortgage securitization. The issue here is not really about the ordinary “the rough and tumble of market capitalism,” as The Wall Street Journal‘s Gerald Seib suggested at the debate last night. Most Americans don’t have a problem with that. The issue is really the corruption of market capitalism represented by the massive fraud that Wall Street banks got away with, for which they were then bailed out by the federal government with no questions asked. All this has aggravated, for average Americans, the frustration they already feel because of the record levels of income inequality that exist in our economy.
That’s why the public is likely to get its dander about Romney’s 15 percent. It is an issue that unites conservatives and liberals, OWS protesters and tea partiers alike. As I wrote in my 2010 book Capital Offense, both the left and the right were justifiably offended by the way the American system of capitalism — real capitalism, that is, the way it’s supposed to work — was subverted during the subprime era. Liberals were appalled by the rampant destruction of social equity, and the rigged way so much wealth was amassed in the hands of the 1 percent; conservatives were outraged that the system didn’t work the way it was supposed to: in other words, if you fail, you die.
So Romney’s biggest problem may not be his robotic campaign style, or the tin ear that lead him to bet Perry $10,000 (presumably at low tax rates) at one point. His biggest problem may be his golden resume. Given the mood of the country, Romney may have a tougher time persuading the public he’s the One during the general election season than he thinks.
By: Michael Hirsh, Chief Correspondent, National Journal; Published in The Atlantic, January 17, 2012
“Your God Is My God”: What Mitt Romney Could Say To Win The Republican Nomination
Governor Mitt Romney has yet to persuade the religious conservatives in his party that he is fit to be President of the United States. However, he could probably appease the Republican base and secure his party’s nomination if he made the following remarks prior to the South Carolina Primary:
My fellow Republicans,
I would like to address your lingering concerns about my candidacy. Some of you have expressed doubts about my commitment to a variety of social causes—and some have even questioned my religious faith. Tonight, I will speak from the heart about the values that unite us.
First, on the subject of gay rights, let me make my position perfectly clear: I am as sickened by homosexuality as any man or woman in this country. It is true that I wrote a letter in 1994 where I said that “we must make equality for gays and lesbians a mainstream concern,” and for this I have been mocked and pilloried, especially by Evangelicals. But ask yourselves, what did I mean by “equality”? I meant that all men and women must be given an equal chance to live a righteous life.
Yes, I once reached out to the Log Cabin Republicans—the gays in our party. Many people don’t know that there are gay Republicans, but it is true. Anyway, in a letter to this strange group, I pledged to do more for gay rights than Senator Edward Kennedy ever would.
Well, Senator Kennedy is now deceased—so I don’t have to do much to best him and keep my promise. But, more to the point, ask yourselves, what did I mean by “rights”? I meant that every man and woman has a right to discover the love of Jesus Christ and win life eternal. What else could I have meant? Seriously. What could be more important than eternal life? Jesus thought we all had a right to it. And I agree with him. And I think we should amend our Constitution to safeguard this right for everyone by protecting the sanctity of marriage.
I don’t have to tell you what is at stake. If gays are allowed to marry, it will debase the institution for the rest of us and perhaps loosen its bonds. Liberals scoff at this. They wonder how my feelings for my wife Ann could be diminished by the knowledge that a gay couple somewhere just got married. What an odd question.
On abortion—some say I have changed my views. It is true that I once described myself as “pro-choice.” But again, ask yourselves, what did I mean? I meant that every woman should be free to make the right choice. What is the right choice? To have as many children as God bestows. I once visited the great nation of Nigeria and a met woman who was blessed to have had 24 children—fully two-thirds of which survived beyond the age of five. The power of God is beyond our understanding. And this woman’s faith was a sight to behold.
Finally, I would like to address the scandalous assertion, once leveled by the Texas Pastor, Robert Jeffress, that my church—the Church of Jesus Christ of Latter-day Saints—is “a cult.” In fairness, he almost got that right—the LDS Church is a culture. A culture of faith and goodness and reverence for God Almighty. Scientology is a cult—this so-called religion was just made up out of whole cloth by the science fiction writer L. Ron Hubbard. But the teachings of my Church derive directly from the prophetic experience of its founder, Joseph Smith Jr., who by the aid of sacred seer stones, the Urim and Thummim, was able to decipher the final revelations of God which were written in reformed Egyptian upon a set golden plates revealed to him by the angel Moroni. Many of you are probably unfamiliar with this history—and some of you may even doubt its truth.
I am now speaking to the base of our party, to the 60 percent who believe that God created this fine universe, and humanity in its present form, at some point in the last 10,000 years. Let me make one thing absolutely clear to you: I believe what you believe. Your God is my God. I believe that Jesus Christ was the Messiah and the Son of God, crucified for our sins, and resurrected for our salvation. And I believe that He will return to earth to judge the living and the dead.
But my Church offers a further revelation: We believe that when Jesus Christ returns to earth, He will return, not to Jerusalem, or to Baghdad, but to this great nation—and His first stop will be Jackson County, Missouri. The LDS Church teaches that the Garden of Eden itself was in Missouri! Friends, it is a marvelous vision. Some Christians profess not to like this teaching. But I ask you, where would you rather the Garden of Eden be, in the great state of Missouri or in some hellhole in the Middle East?
In conclusion, I want to assure you all, lest there be any doubt, that I share your vision for this country and for the future of our world. Some say that we should focus on things like energy security, wealth inequality, epidemic disease, global climate change, nuclear proliferation, genocide, and other complex problems for which scientific knowledge, rational discussion, and secular politics are the best remedy. But you and I know that the problem we face is deeper and simpler and far more challenging. Since time immemorial humanity has been misled by Satan, the Father of Lies.
I trust we understand one another better now. And I hope you know how honored I will be to represent our party in the coming Presidential election.
God bless this great land, the United States of America.
By: Sam Harris, Sam Harris Blog, January 15, 2012
Why The Bain Capital Controversy Is So Damaging To GOP Chances This Fall
The last few weeks of the Republican Presidential road show has been dominated by discussion of Mitt Romney’s career as head of a Wall Street private equity firm — Bain Capital. Most people who enter politics have some previous career in the private sector — especially if they’re wealthy.
But Mitt Romney’s career on Wall Street — which he apparently hoped would allow him to tout his credentials as a “job creator” — will instead weigh down his election hopes like a massive millstone. There are six reasons why:
1). First and most important, attacks on Romney’s history at Bain are not “attacks on free enterprise” — or being “anti-business.” They are important for what they communicate about Mitt Romney and his values and the contrast that it poses with President Obama.
Barack Obama – like Mitt Romney — earned a degree at Harvard — and all of the opportunities that afforded. But when he graduated from law school, Obama went to work helping workers in the shadow of closed -down steel mills. Romney made millions for himself closing down steel mills.
The point is not just that workers were laid off, or jobs were outsourced — though they were. The point is not whether some of the ventures Romney funded succeeded and others failed. The point is that the impact of Romney’s business activity on the lives of ordinary people was incidental to his one and only goal: making huge sums of money for himself and a small group of his partners and investors.
Romney’s idea of success was embodied in that picture from two decades ago, with Romney at the center, surrounded by a squadron of Wall Street sharpies with money coming out of their pockets, their mouths and ears.
The point of the Bain story is that Romney would do whatever he could legally do to make money for himself and his crew. The effect of his decisions on the lives of ordinary people — or even the businesses in which they invested — was simply irrelevant. If shifting jobs overseas would make him and his friends more money – fine. If Bain could make millions by loading up a business with debt and bleeding it of cash — that was fine too — even if it meant that the business itself was ultimately forced to close. If buying a business and chopping it up into parts for resale would make him more money — so be it.
Improving the lives of ordinary workers — or of local communities — was never his goal. His goal was to make millions and millions of dollars for himself — often at other people’s expense. Instead of viewing ordinary workers as human beings who were parts of a team, he viewed them as “factors of production” — assets to be used when they helped him make money — objects to be discarded when that would fatten his bottom line.
Americans want a President who understands and cares about ordinary people — that’s not the Mitt Romney of Bain Capital.
2). If you were the Republican Party, you couldn’t pick a worse time to nominate a candidate with a resume as one of Wall Street’s “Masters of the Universe.”
Even today, most voters are acutely aware that the recklessness of the big Wall Street Banks — and a complicit Bush Administration — caused the 2008 financial crisis that cost eight million Americans their jobs and worst economic calamity since the Great Depression.
The GOP will have to go some distance to convince everyday voters that they should trust their economic futures to a guy who was part of precisely the same crowd whose greed and recklessness just sent the economy crashing in flames.
After all, not many people would be keen to sign up for a cruise managed by the same team that commanded the Titanic.
3). Over the last year, Americans have become increasingly focused on economic inequality — and on the fact that the gang that caused the economy to collapse kept making billions while everyone else paid the price.
The message of the Occupy Movement doesn’t resonate solely on the left of the political spectrum. Occupy speaks to many independents and conservatives as well.
And let’s remember, the Occupy Movement started out as “Occupy Wall Street.” Americans are increasingly uncomfortable with the exploding role of the financial sector in the American economy. They are not uncomfortable because of theoretical or “policy” concerns. It just doesn’t make sense to them that a relatively tiny number of people — who don’t build a product or create a service — can make massive amounts of money, while ordinary people who work hard and play by the rules see their incomes flat-line.
Their view is simple. They create cars, or food, or houses or computers — or they provide police protection, or care for sick people, or teach our kids. Why should they be asked to sacrifice when guys who basically gamble for a living — as Wall Street speculators — make incomprehensibly large sums of money?
It makes no sense to them that 400 families control as much wealth as 150 million of their fellow Americans — that the top 1% control 30% of all of the wealth in America.
It makes no sense that a hedge fund investor like John Paulson can make $5 billion in income and pay a lower percentage in taxes than a secretary. He makes $2.4 million per hour — or $40,000 a second. Paulson makes as much in the first 1.25 minutes of the work year as the average worker makes all year long.
That kind of excessive wealth might not upset everyday Americans so much if their own incomes were growing. But those incomes have stagnated for decades. And over those same decades, the incomes of the top 1% have increased by almost 300%.
And perhaps most galling to everyday voters, is the fact that the wealthiest Americans have such an outsized influence setting the rules — cutting their own taxes — making their own regulations — and are rarely held accountable for the recklessness that has cost everyone else so dearly.
Americans feel that the middle class is in dire jeopardy — that it is under attack. They worry that the American dream will be snatched from their own families — and those of their children.
Not a great time for the Republicans to nominate a poster boy for the one percent.
4). The impact of Romney’s record at Bain is magnified by his own personality.
Romney comes across as a cold, calculating guy — precisely the kind of guy who doesn’t blink an eye when he orders up hundreds of “pink slips.” He is about as empathetic as a rock.
He has a hard time connecting with people in public — and on TV. And he seems to have a tin ear — a hard time understanding how his remarks will be interpreted by ordinary voters.
He “enjoys” firing people who don’t give him good service. Really?
He doesn’t understand how it might sound for a guy who has a fortune of $200 million to say that he is actually “unemployed” too. Or when — having graduated from Harvard, born into a family of the CEO of a big auto company, he says he has been worried about getting a “pink slip”? Sure.
He doesn’t even have to stop and think when he offers to bet $10,000 on who is right in a televised debate? Ten thousand dollars is two thirds of the average annual Social Security benefit.
That kind of tin ear sends a message to ordinary voters that he is simply out of touch – that he doesn’t understand or empathize with the lives of ordinary Americans.
Then there is the story of the 12-hour trip with the dog in the kennel on top of the car. The story about how when the dog got sick riding on top of the car — had an attack of diarrhea. Romney hosed down the car — hosed down the dog — put the dog back on top of the car and continued the drive.
These personal characteristics just reinforce the picture of Romney as a Wall Street baron who doesn’t understand or care about the needs, or lives, or interests of ordinary Americans.
5). The fact that Newt Gingrich and Rick Perry have joined in defining Romney’s Bain years absolutely inoculates Democrats from charges that they are “anti-free enterprise” or “anti-business” when they make the same charges.
Probably not very likely that Gingrich or Perry would volunteer to attack Romney’s history at Bain next September — but they just did. All Democrats need to do is put a clip of Rick Perry in an ad where he accused Romney of being a “vulture capitalist.”.
6). Finally, in so many respects, Romney’s Bain history makes him the perfect antagonist in the campaign narrative set out by President Obama last month in his Kansas speech.
The President will, quite correctly, frame the upcoming election as a battle for the future of the American middle class — a choice between a society where we’re all in this together or all in this alone.
He will offer a vision of America where we look out for each other — where everyone is called upon to play by the same rules — and everyone gets a fair shot, a fair shake and contributes their fair share.
The Willard Mitt Romney who ran Bain Capital is the perfect foil for the Democratic narrative this fall. That’s why the Bain Capital narrative is so important for defining Romney and setting the terms of this year’s election campaign.
Just visualize the national political debate that features the Mitt Romney we’ve seen on TV the last several weeks and the Barack Obama who made the speech in Osawatomie, Kansas last month.
At the close of his Kansas speech — which took place in the same town where Theodore Roosevelt had announced his “New Nationalism” a century ago. Obama said:
“We are all Americans,” Teddy Roosevelt told them that day. “Our common interests are as broad as the continent.” In the final years of his life, Roosevelt took that same message all across this country, from tiny Osawatomie to the heart of New York City, believing that no matter where he went, no matter who he was talking to, everybody would benefit from a country in which everyone gets a fair chance.
And well into our third century as a nation, we have grown and we’ve changed in many ways since Roosevelt’s time. The world is faster and the playing field is larger and the challenges are more complex. But what hasn’t changed — what can never change — are the values that got us this far. We still have a stake in each other’s success. We still believe that this should be a place where you can make it if you try. And we still believe, in the words of the man who called for a New Nationalism all those years ago, “The fundamental rule of our national life,” he said, “the rule which underlies all others — is that, on the whole, and in the long run, we shall go up or down together.” And I believe America is on the way up.
By: Robert Creamer, The Huffington Post, January 16, 2012
After Supporting Health Care Mandate In 1994, Santorum Now Says He Never Supported Mandates
Former Pennsylvania Sen. Rick Santorum (R) stepped up his criticism of GOP presidential primary front-runner Mitt Romney on CBS’ Face The Nation this morning, slamming Romney for providing “the basis” for the Affordable Care Act when he signed a comprehensive health reform law while he was governor of Massachusetts.
In addition to providing a model for national health care reform, RomneyCare is to blame for raising taxes, rising health care costs, and, worst of all, Santorum said, an individual mandate requiring people to buy health insurance. That, Santorum said, represented a government intrusion into health care that he never has and never could support:
SANTORUM: Gov. Romney’s plan, as much as he’d like to say it’s not, was the basis of Obamacare. He was for an individual mandate, he was for government top-down control of the health care system in Massachusetts. And it’s led to the highest cost health care in the nation in Massachusetts, it’s led to higher taxes. … It is an absolute disaster. […]
He would not have the clear record that I have…of being for government out of the health care business, being for a plan that is bottom-up, private sector health care reform. Unlike other folks in this race, I’ve had a consistent record over that time of not being for individual mandates. … He has been for individual mandates, I have not.
Watch it:
As Igor Volsky reported last week, however, Santorum supported an individual health insurance mandate during his 1994 Senate campaign, shortly after a host of Senate Republicans had offered the mandate as an alternative to President Clinton’s health reform plan.
And aside from the fact that RomneyCare did lay the groundwork for the Affordable Care Act — Romney repeatedly touted his plan as a national model before the ACA passed — Santorum’s criticisms are largely off-base. Massachusetts’ health costs are rising, but at rates comparable to the national average, and the cost of some premiums has fallen dramatically. Meanwhile, the state has the lowest uninsured rate in the nation, with just 4.7 percent of Bay Staters lacking health insurance.
By: Travis Waldron, Think Progress, January 15, 2012
Share This Blog
Unknown Feed- An error has occurred; the feed is probably down. Try again later.
mykeystrokes.com 